Chinese Authorities Urge International Regulators to Tighten Supervision of Cryptocurrencies

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Chinese officials have called on international regulators to tighten oversight of the cryptocurrency industry around the world to protect users from the risks of fraud and loss of money.

Deputy Governor of the People's Bank of China(NBK) Xuan Changneng acknowledged that regulators should not “close the door” to innovation, but that new technologies must be tested and implemented in accordance with existing regulations. Changnan noted that there are many risks associated with digital assets. In addition to cryptocurrency fraud, he mentioned the bankruptcy of American banks that provided services to companies working with cryptocurrencies.

“The concept of regulating new technologies needs to be improved so that financial innovations do not pose a threat to financial stability,” said the deputy governor of the NBK.

Vice Minister of Finance of China Liao Min(Liao Min) stated that China is ready to take a direct part in creating international standards for the cryptocurrency industry. He believes the sector's prospects have already been undermined by hackers, intruders and bankruptcies, leaving the future of digital assets more uncertain than ever.

It should be noted that China is more open to blockchainloyal than to cryptocurrencies. In February, China's Ministry of Science and Technology approved the creation of a center that will research and develop blockchain in the country. In March, the Shanghai Chemical Industry Testing Research Institute (SICIT) announced that it would use blockchain to track dangerous chemical cargo.